These Projections Are Preliminary and Subject to Change
Total development cost (including land purchase) is anticipated to be $27.8mm (i.e., $398,000 per hotel key), which will consist of $10mm in equity and $18mm in debt. The Sponsor is contributing $1.5mm of the project equity.
The Sponsor expects the stabilized property to yield an 11.1% cap rate (based on 58% occupancy and $392 Average Daily Rate) which is forecast to deliver a 2.9x equity multiple and 18.9% IRR (net) to investors over a 10-year period.
The following fees and promote structure are expected to apply to an investment:
The matrix below shows the potential equity multiple (net) and IRR (net) for an LP investor over 10 years. This assumes that the property is refinanced in Year 4 (at a 10% Debt Yield) and subsequently sold at the end of year 10 at an 8% cap rate.
Minimum Investment: $250,000
Please let us know if we can provide any additional detail, comps, or financial projections to help your diligence.
The material provided herein is for informational purposes only. Shinrin Yoku LLC (the “Sponsor”) is not soliciting or recommending any action based on this material. It does not constitute an offer to sell or a solicitation of an offer to buy any securities relating to the Project or any other securities. Any such offering of an investment opportunity will be made only in accordance with the terms and conditions set forth in, and the material provided herein is qualified in its entirety by reference to, a confidential offering memorandum, the governing documents and the subscription agreements in respect thereof, if the Sponsor decides to seek such investments. Although the Sponsor believes that the investment will achieve positive returns for investors, all real estate investments involve significant risk.
This website is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. In making an investment decision, prospective investors must rely on their own examination of the merits and risks involved. The contents herein are not to be construed as legal, business, or tax advice, and each prospective investor should consult its own attorney, business advisor, and tax advisor in order to make an independent determination of the suitability and legal, business and tax consequences of an investment.
In considering any performance information contained herein, prospective investors should bear in mind that past or projected performance is not necessarily indicative of future results, and there can be no assurance that any investment opportunity will achieve comparable results or that target returns, if any, will be met. Potential investors must be prepared to bear capital losses, even a total loss of the amount invested. The information herein (including all projected performance information) includes, or is based upon, observations and/or assumptions and involves significant elements of subjective judgment and analysis. No representations are made as to the accuracy of such observations and assumptions and there can be no assurances that actual events will not differ materially from those assumed. In the event any of the assumptions used in this presentation do not prove to be accurate, results are likely to vary substantially from those discussed herein. Any opinions expressed in this document may be subject to change without notice.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a limited partner may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.
Any investment is subject to various risks and other investment considerations, none of which are outlined herein. A description of certain risks and investment considerations involved with an investment will be found in the confidential offering memorandum; such risks and investment considerations should be carefully considered by prospective investors before they make any investment decision. Any key terms described in this presentation represent a general overview of certain selected terms. A more detailed summary of terms is or will be contained in the confidential offering memorandum, and such detailed summary of terms and any key terms set forth in this presentation are qualified in their entirety by reference to the agreements.
The Sponsor and its affiliates reserve the right to modify any of the terms of the offering and the interests in respect of any opportunity described herein.
Recipients of this website agree that the Sponsor, its affiliates and their respective partners, members, equity holders, employees, officers, directors, agents, and representatives shall have no liability for any misstatement or omission of fact or any opinion expressed herein.
Except as otherwise specifically set forth herein, statements in this website are generally made as of February 2018. The Sponsor does not undertake to, and will not, update any such statements and neither the delivery of this presentation at any time nor any sale of any interests described herein shall under any circumstances create an implication that the information contained herein has been updated as of any time after February 2018.
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